Hong Kong Crisis May Bind
Fed's Hands on Interest Rates

By

Dave Pettit The Wall Street Journal Interactive Edition

Updated Oct. 24, 1997 9:16 p.m. ET

The turmoil that gripped Hong Kong raised a multitude of questions about the outlook for the markets and the economy. But in the minds of many on Wall Street, it also created one near certainty: Interest rates are on hold.

Even with the Hong Kong stock market's rebound on Friday and assurances that the Hong Kong dollar will be defended, Southeast Asian currency markets remain fragile. As such, the Federal Reserve faces added pressure...